Brazil Auction Rules May Boost Price of Wind Power 15%

Developers must install as much as 15 percent more generating capacity at new wind farms to compensate for the variable output from turbines, under rules announced by the Ministry of Mines and Energy last month, Elbia Melo, president of Sao Paulo-based Associacao Brasileira de Energia Eolica said yesterday. They also face new restrictions on where they can build. Brazil gets 81 percent of its power from hydroelectricity and the government is seeking to stabilize a power grid that’s overly dependent on renewable sources. The new policies are aimed at ensuring that wind farms deliver a certain amount of electricity, Melo said. They will also require developers to spend more on equipment and may prompt them to build in locations with less-than-ideal wind conditions that reduce output. “We understand that the government measures are legitimate and sensible but our worry is tha...